Legal Question in Employment Law in California

Re: Employee Benefit Reduction

If you have an employment contract that specifically guarantees you the beneifts which are being reduced, then you may have a claim.

If you have no such contract, then most likely you are classified as an at will employee. At will employees can be terminated for almost any reason. As such, there is case law that holds since an at will employee can be terminated at any time, then their compensation may be reduced or adjusted at any time. The same would likely apply to employee benefits i.e. they can be reduced or terminated at any time (except for government mandated benefits like worker's compensation insurance and unemployment insurance).

You mentioned that you were one of only two employees out of 100 to which this was done. There may be other grounds to protet your benefits. For example, if the new employer is denying you and the other employee benefits because you are both of a certain race or ethnicity or based on your gender or age, you may have a claim, but such claims are hard to prove.

Contact an attorney in your area and further explain the specifics of your situation.